The value-oriented stocks in our Retirement Compounder’s portfolio are beginning to get more press. This comes as no surprise to me. Winners tend to attract attention. Dick Young explains in his January 2014 Intelligence Report (subscription required).
Over the last decade, my dividend-based Retirement Coumpounders (RCs) have outperformed nine of 10 industry groups in the S&P. On a statistical basis, this record is extraordinary, even if it is my record. When you consider that I invest 100% from a mix of these 10 industry groups, it is no easy task outrunning all but one group. Moreover, I do not even invest with an eye on the individual groups. My formula is to select the RCs based strictly on the combination of yield, dividend growth record, and prospects for dividend increases.
From the outset the goal of the RCs was not to beat the market. But as you can see in the chart below that’s exactly what these extraordinary stocks have done.
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